INTRODUCTION TO CRYPTOCURRENCY
Unless you’ve been living under a rock, you’d have heard about cryptocurrencies or Bitcoin atleast.There’s a lot of buzz around it, but disproportionately less clarity regarding what it actually is. Now let's watch a short video on the first decentralized cryptocurrency,the famous Bitcoin.
Unless you’ve been living under a rock, you’d have heard about cryptocurrencies or Bitcoin atleast. There’s a lot of buzz around it, but disproportionately less clarity regarding what it actually is. In this article we’ll introduce ourselves to the fundamental principles of cryptocurrencies, clear the mist of confusion which surrounds them, and debunking some myths along the way too. Now let’s watch a video on the first and successful cryptocurrency, the famous Bitcoin:
WHAT IS BITCOIN?
The Bitcoin (BTC) was the first cryptocurrency, developed in 2009 by Satoshi Nakamoto (a pseudonym).
Bitcoin is a consensus network that enables a new payment system and a completely digital money.
There will only be 21 Million units of Bitcoin in circulation released through "mining' process.
It is the first decentralized peer-to-peer payment network using Blockchain technology that is powered by its users with no central authority or middlemen.
From a user perspective, Bitcoin is pretty much like cash for the Internet. They can be used to purchase goods or services just like any other conventional currency.
WHAT IS BLOCKCHAIN?
The blockchain is the best known as the general ledger where Bitcoin transactions are recorded.
A blockchain is a data structure that makes it possible to create a digital ledger of transactions and share it among a distributed network of computers.
Nobody owns the Bitcoin network much like no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world.
WHAT DETERMINES BTC PRICE?
The price of a bitcoin is determined by supply and demand. When demand for bitcoins increases, the price increases, and when demand falls, the price falls.
There will be only be 21 Million Bitcoin in circulation. Hence, the supply is limited and this will cause the price to increase over time.
Let’s have a look at the growth of Bitcoin since 2012:
History of Bitcoin Price
HOW BITCOIN WORKS?
• Anyone can purchase from exchanges using any currency and payment methods
• Sent from person to person by BTC addresses and arrive instantly
• Relies on miners who verify all transactions that are sent
• Traded on open market to ensure real value determination.
HOW TO GET INVOLVED IN BITCOIN?
1. Buy & Hold Bitcoin
2. Bitcoin Mining
WHY SHOULD YOU INVEST IN BITCOIN
Many people have been treating Digital Assets like Bitcoin as investment vehicles, hoping to make a profit if and when the value of their currency increases. Like other assets such as gold, Bitcoin can be a part of your financial portfolio.
WHY BITCOIN IS THE FUTURE :
• COMPLETELY DECENTRALIZED
• OPEN SOURCE
• ELECTRONICALLY TRANSFERRED GLOBALLY
• INFLATION PROOF ( 21 MILLION BITCOINS)
• MANIPULATION PROOF (BLOCKCHAIN)
• VALUE OF BITCOIN IN 2009 = USD 0.02
• VALUE OF BITCOIN IN 2019 = USD 10,000
• APPROX MORE THAN 500,000 TIMES APPRECIATION IN 10 YEARS
AS PER LATEST DATA, BITCOIN IS DEEMED TO BE THE LARGEST GROWING ASSET IN THE WORLD !